With new home building forecast to fall by almost 50 per cent, the HIA said this will put half a million jobs in the building industry at risk.

However, if the recommendations of the Property Council of Australia are accepted by the Federal Government, it may kickstart the economic recovery both the building and wider industries need.

“In 2018/19 the industry engaged over 1 million people to commence building almost 200,000 new homes," said HIA's Managing Director, Graham Wolfe.

"Next year we expect to start just 112,000 new homes leaving up to 500,000 jobs at risk." 

At a Glance:

• 2018/19 1 million people started building 200,000 new homes, next year 112,000 new homes will start leaving 500,000 jobs at risk.
• Stopping overseas migration and the absence of student arrivals will see the market at a lower point in December 2020
• 625,000 overseas students enrolled in Australian education institutions equates to demand for the past two years of apartment construction

The recommendations by the Property Council include incentives for new housing construction, broad-based tax reform, improving the supply of affordable housing, and the renewal of our migration program are among the key areas for action for economic recovery after COVID-19.

“Some big and bold thinking is required to get the Australian economy going again after the impact of the COVID-19 pandemic,” said Ken Morrison, Chief Executive of the Property Council of Australia.

“As Australia’s biggest employer which contributes over 13 per cent of GDP, the property industry can be a powerhouse behind economic recovery and growth with the right policy settings and market incentives from the federal, state and territory governments,” Mr Morrison said.

Mr Wolfe told WILLIAMS MEDIA while he agreed with the PCA 7-point plan, it was more long-term, whereas the HIA were looking to introduce measures to stop the pause in construction that will happen in the second half of the year and into 2021.

"The stimulus needs to be about getting slabs on the ground in the second half of the year," said Mr Wolfe.

"Otherwise concreters, plumbers, builders and painters won't have a job as there won't be anything next year.

"We are looking at stamp duty and tax relief, as we know infrastructure tax is a big part of home and land packages.

"With planning reform, what we need is for councils to let people know what they have got to do to meet their standards and fast-track long approvals, so plans can get through the system in weeks not months.

"With the Federal Government we need stimulus to bring forward demand, as people have been putting decisions on hold in regards to renovations and building new homes.

"This is about getting people to go ahead with a domestic project."

The Property Council's recommendations include:

1. A Housing Construction Economic Kickstart including a $50,000 ‘New Home Boost’ scheme to startup construction for new housing, generate jobs and boost consumer confidence with the potential to stimulate construction of 50,000 new dwellings, supporting more than 200,000 jobs, by bringing forward market demand for new housing. State and territory governments could initiate additional demand stimulus through first home buyer grants, stamp duty and foreign investor surcharge relief.

2. Catalyst Projects to Accelerate Growth including fast track approvals for shovel-ready institutional and private sector projects – housing, retirement living units, commercial, industrial, mixed use and other projects that support many more jobs than government projects alone.

3. Resetting the Housing Affordability Equation for Australians by allowing new housing to be purchased at lower prices by creating a permanent improvement to planning systems such that they produce outcomes that are faster, cheaper and better.

4. Tax Settings to Drive Productivity by embarking on a broad-based tax reform agenda designed to enhance productivity and increase living standards for Australians.

5. Harnessing Capital to Support Recovery and Investment by making it clear that Australia is open for business and open for investment by:
• Clear consistent messages and policy settings from federal, state and territory governments, including a strong marketing campaign to reinforce this message
• Urgently ensure the Foreign Investment Review Board approvals are processed within 30 days,

6. A Resilient and Forward-looking Australia where we revisit the recommendations around future skills and work in the Productivity Commission’s 2017 Shifting the Dial report. Engage with the property industry on the evolving skill requirements of this 1.4 million employee sector.

7. A ‘Welcome to Australia’ Migration Plan that helps to provide the skills, people and population growth our economy needs through friendly but highly secure testing, isolation and tracing arrangements for international arrivals, to protect public health and facilitate economically-important travel; a major international advertising campaign promoting Australia as a safe and healthy destination to visit, study, work and make a new life; target temporary visa classes that can make an immediate and positive impact on economic growth; and, incentives for permanent skilled migration.

More detail on the Seven Point Plan for Economic Recovery is here.

Mr Wolfe said the loss of the international students and migration creates a temporary imbalance in demand for rental accommodation.

"The 625,000 overseas students enrolled in Australian education institutions equates to demand for the past two years of apartment construction," said Mr Wolfe.

“The nature of this shock requires significant and ongoing support from policymakers in Australia and amongst our trading partners."

Mr Wolfe said the risk that insufficient support will produce a decade of deflation, depression and human hardship, is present. 

“Restarting the economy and allowing students to return are also necessary steps to a full recovery," said Mr Wolfe.

Mr Wolfe said drawing forward housing demand can also play a role in alleviating the emerging shock to new home construction and the wider economy.

"Traditionally, Australia has done this through empowering consumers to build new homes," said Mr Wolfe.

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